Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||
Add: | ||||||||||||||||||||||
(Loss) income before income taxes and minority interest | $ | (4,132 | ) | $ | 19,976 | $ | (4,336 | ) | $ | 55,594 | ||||||||||||
Fixed charges | 27,452 | 11,452 | 79,789 | 31,521 | ||||||||||||||||||
Amortization of capitalized interest | 3 | 3 | 8 | 8 | ||||||||||||||||||
| 23,323 | 31,431 | 75,461 | 87,123 | |||||||||||||||||||
Subtract: | ||||||||||||||||||||||
Distributions to minority holders | 1,488 | 794 | 5,480 | 3,124 | ||||||||||||||||||
Earnings | $ | 21,835 | $ | 30,637 | $ | 69,981 | $ | 83,999 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||
Interest expense | $ | 24,484 | $ | 8,417 | $ | 70,711 | $ | 22,221 | ||||||||||||||
Amortization of deferred financing charges not included in interest expense | — | — | — | 230 | ||||||||||||||||||
Portion of rentals deemed to be interest | 2,968 | 3,035 | 9,078 | 9,070 | ||||||||||||||||||
| $ | 27,452 | $ | 11,452 | $ | 79,789 | $ | 31,521 | |||||||||||||||
Ratio of earnings to fixed charges | 0.8 | x | 2.7 | x | 0.9 | x | 2.7 | x | ||||||||||||||